XYZ stock price and dividend history are as follows:

An investor buys five shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all six remaining shares at the beginning of 2018. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

. A single-price monopolist has the schedules given in the table below.

a. Determine the profit-maximizing level of output, price as well as the amount of profit or loss at this level. Clarify how you obtain the answer.

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

b. Compare between the perfect competition and monopoly market structure.

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…………………………………………………………………………………………………..

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Based on the information below please:

Calculate TR for each price level

At every price level compare TR thus you will calculate the change in TR as the price drops.

In which price range is your demand elastic

In which price range is your demand unit elastic

In which price range is your demand inelastic

Explain how you can assess that in a particular price range the demand is elastic, unit elastic or inelastic.

Price Quantity TR

10 1

9 2

8 3

7    4

6 5

5    6

4 7

3    8

2 9

Question 4: Why some governments resort to price ceiling and price floor for some goods and services? Describe three most important disadvantages of price ceiling and price floor? In what conditions do you think that price ceiling and price floor may contribute to welfare of people?

Question 4: Why some governments resort to price ceiling and price floor for some goods and services? Describe three most important disadvantages of price ceiling and price floor? In what conditions do you think that price ceiling and price floor may contribute to welfare of people?

Q. Why some governments resort to price ceiling and price floor for some goods and services? Describe three most important disadvantages of price ceiling and price floor? In what conditions do think that price ceiling and price floor may contribute to the welfare of people?

Τhe P/E (price to earnings) ratio show us the expected price of a stock based on its earnings. Investors tend to invest in a company with a high P/E ratio and buy its shares. On the other hand, reported earnings are often reconstructed by the companies by using some accounting techniques in order to attract investors. Which are those accounting techniques which can artificially help companies change the P/E ratio trend line?

A dominant or price setting firm and several smaller price takers serve a market where total market demand is Qd = 560 – 2P and the combined supply from all the smaller firms is Qs = - 60 + 2P.

1. State the demand (Q_df=) and inverse demand (P_df=) function for the dominant firm (df).

2. If the dominant firm decides to produce 220 units, determine the price (P) it will set for the market and the (combined) quantity supplied by all the small firms (Qs).

3. Does this market meet the assumptions that the dominant firm has at least a market share of 50%? (you must motivate your answer numerically)

1. Differentiate barometric price leadership and dominant price leadership.

2. Is there a similarity between cartel pricing and monopoly pricing?

3. What conditions are favorable to the formation and maintenance of a cartel?

4. Can government be a potent force in the establishment and maintenance of monopolistic conditions? Name and describe such occurrences.

5. Describe the properties of the Baumol revenue maximization model. Do you consider this to be a good alternative to the profit maximization model?

6. Telephone companies charge different rates for calls during the day, in the evening, and at night or weekends. Do you consider this to be price discrimination?